The paper “ Sustainability and Profitability in China Airlines Cargo” is a great example of a case study on marketing. China Cargo Airlines is a cargo Airline that was established in 1998 and has a head office on Hongqiao International Airport. China Cargo Airlines is an all-cargo airline that is dedicated will freight services and utilizes China Eastern Airlines' operational network. Other hubs that China Cargo Airlines operates include International Airport, Shanghai Pudong, and International Airport. China Cargo Airlines has a fleet size of twelve planes and operates to 20 destinations. The parent company of China Cargo Airlines is China Eastern Airlines.
China Cargo Airlines is in an alliance with SkyTeam Cargo. The company plans to acquire additional planes because the market size is growing and the customers continue to understand product offerings. It is imperative to note China Cargo Airlines operates in a competitive industry, which requires high-quality services and operates across different geographical boundaries. Situation AnalysisThe geographical requirements and operational strategies are important since it has to reflect the changing business dynamics (Lei and O’ Connell, 2011). The aim of the business is to sustain the business and continue to generate profits and revenues in addition to increasing the market share (Wang, 2007).
The airline industry requires extensive engagement with the customers and the quality of interaction influences the business operation. Therefore, the aim of the business proposal is to analyze the business operating environment and internal processes and provide recommendations on the future of the company to address the requirements of sustainability and profitability. Proposed Conceptual Framework, Theories, and ModelsPEST AnalysisThe PEST analysis is a framework that provides an analysis of an organization from the perspective of politics, economics, social and technology.
The following is a PEST analysis of China Airlines Cargo: PoliticalChina Airlines Cargo operates in a highly regulated political environment. The political policies of a country towards airlines such as regulating price while restricting new entrants, or issuing more independence impacts the success of airline companies (Hong and Zhang, 2010). As such, China Cargo Airlines can easily achieve its success by operating in more countries than have deregulation, open skies and independence policies (Wang et al. 2014). Additionally, focusing on the political stability of countries is an added advantage while engaging the local political dispensation to support the requirements and expectations of China Airlines Cargo. EconomicThe current global economic growth generates an enormous opportunity for China Airline Cargo (Lei and O’ Connell, 2011).
The benefits of economic growth result in high goods-flow hence the capability to improve the industry profitability (Wu, He and Cao, 2013). Additionally, increasingly globalization poses positivism due to the free movement of goods. Contrarily, economic stagnation poses negative outcomes such as restrict travels and much lower fares.
As such China Airlines cargo needs to strategize on how to reduce investment during economically weaker periods to prevent loss. SocialAn increase in consumer class implies consumers demanding for good terms and services from a company (Wu, He and Cao, 2013). As such, airline industries have to come up with better terms and services so as to win the heart of consumers (Wang, 2007). Additionally, the consumer profile is changing whereby the clients are economically minded while selecting companies. Therefore, China Cargo Airlines needs to apply a new strategy that is fair based on the country's social position.